ARN Media reported revenue down 10% to $285 million in the year to December, impacted by a challenging market and changing advertiser expectations.
The company has reset its strategy to position ARN as an entertainment business with digital and radio at its core.
And operating costs have been cut by 4% to $187 million.
ARN continues its divestment of non-core assets, with the exit from creative agency Emotive and the partial sale of its SCA shareholding.
“With a new leadership team in place, we have taken decisive steps to simplify the business, reduce costs and set a new strategic direction to evolve ARN into an entertainment company with greater exposure to digital revenues,” said CEO Michael Stephenson.
“Radio remains core to our strategy. We have world class talent, strong national radio brands, and a profitable regional network.
“Our new 10-year agreement with iHeart will allow us to enter new markets and accelerate our digital transformation.
“We remain focused on cost discipline, expanding our addressable market, and delivering long term sustainable growth in revenue and EPS.”
The company expects the total audio advertising market to be flat in the current financial year, with low single digit declines in the radio market, offset by growth in digital.
ARN expects its metro revenue share to improve, the regional share to remain stable and digital revenues to grow mid-high teens.
The company has identified $55 million of cost cutting to the 2027 financial year.
Since the 2024 financial year, $31 million of savings have been realised, including $24 million in 2025.
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